Why You Should Compare Homeowners Insurance Options Annually

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This article is sponsored by Progressive. All opinions are our own, including our own experience using their product.

When was the last time you thought about your homeowners insurance? When you bought your house? Maybe you refinanced and had to find your documents? Maybe the last time you paid your annual premium?

Chances are, if you’re like me (and most people), you’ve never thought about your homeowners insurance since the day you closed on your house. You’ve paid your premiums diligently, and gone about your business.

But what if that’s costing you hundreds (or even thousands) of dollars extra per year? Would you know? How can you quickly and easily find out? And is it hard to switch?

Let’s look at how easy Progressive has made it to shop around for insurance with their new HomeQuote Explorer, and I’ll show you my results and review as well.

The Importance Of Shopping Around For Homeowners Insurance

Homeowners insurance is likely your highest insurance expense as a homeowner. According to a 2017 ValuePenguin survey, the average homeowner pays $964 per year nationwide for homeowners insurance. Depending on your state, it could be even more.

For example, Florida homeowners pay $1,471 per year on average – over $500 more per year.

Living in California, I currently pay $1,209 per year for my homeowners insurance policy. And honestly, I’ve never shopped around for anything different in the 5+ years I’ve owned my current home.

The scary part about these numbers is that nobody really thinks twice about them once they are insured. But the insurance companies think about pricing all the time – insurance prices rise and fall all the time. If you’re not shopping around every now and then, you could be missing out on savings.

It used to be that shopping around for homeowners insurance was challenging and time consuming. You would either have to call or go online to a bunch of different company’s websites, enter you information, and get a call back for a quote (heaven forbid they actually share their rates online).

Progressive is changing that with their new quoting experience HomeQuote Explorer.

How Progressive Has Made It Easy To Compare Options

Progressive HomeQuote Explorer has made it easy to compare different insurance options in about 5-10 minutes.

Once you’re on the page, simply select Get A Quote, and you’ll be asked a series of questions about you, your home features, and people living with you.

At the end, you’ll be matched with a carrier based on your answers, and also see options for other insurance carriers so you can compare price and coverage.

What is great about the tool is that you can quickly and easily see what options are available to you, what the coverage amounts are, and how much you’ll pay (and potentially save) each year.

The only drawback I found with the tool is that it doesn’t allow much customization. I prefer to have a high deductible ($2,000 or even $5,000) in order to lower my annual premiums. I think it’s better to pay less each month/year, but pay more out of pocket if something happens.

Also, I’d love to change some of the insurance levels. I do have an umbrella policy, and I need to ensure that any homeowners policy covers up to the lower limit of the umbrella policy so there are no gaps in coverage.

Video Review Of HomeQuote Explorer

Check out our video of the HomeQuote Explorer and see how easy it is to use:

How To Change Homeowners Insurance If You Go With Another Company

So, did you find a better deal on homeowners insurance and are you ready to switch? Is it scary to switch because you don’t want to be left uninsured?

First, if you like the quote you found on the HomeQuote Explorer, simply select “Buy Now” and purchase it. Once all your paperwork is finalized, you’ll get confirmation that your insurance is in effect.

Once you are certain you have your new policy in effect, you simply call your old insurance company and cancel. Most even allow you to cancel online. Very simple!

If you have a mortgage, you do need to take the additional step and let your lender know about your insurance policy change. Many companies allow this to be done online, but you might have to call if you don’t bank online with your mortgage lender.

Chances are, though, that the savings you’ll see each year is worth the little bit of time it took to switch policies.

Do you have homeowner's insurance? Have you shopped around for quotes lately?​

Filed Under: InsuranceTagged With: homeowners insurance, homeowners insurnace quotes, InsuranceEditorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, or other advertiser and have not been reviewed, approved or otherwise endorsed by any of these entities.

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About Robert Farrington

Robert Farrington is America's Millennial Money Expert, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here.

One of his favorite tools is Personal Capital, which enables him to manage his finances in just 15-minutes each month. Best of all - it's free!

He is also diversifying his investment portfolio by adding a little bit of real estate. But not rental homes, because he doesn't want a second job, it's diversified small investments in a mix of properties through Fundrise. Worth a look if you're looking for a low dollar way to invest in real estate.